United Airlines Q4 and Full Year EPS Beat Wall Street Expectations, With Full Year EPS Up Year-Over-Year
Rhea-AI Summary
United Airlines (NASDAQ: UAL) reported fourth-quarter and full-year 2025 results that beat expectations. Full-year diluted EPS was $10.20 (up 8% YoY) and adjusted EPS was $10.62. Full-year operating revenue was $59.1B, the highest in company history. Q4 revenue was $15.4B, a quarterly record. United generated $8.4B operating cash flow and $2.7B free cash flow in 2025, ended the year with $15.2B available liquidity and $25B total debt (net leverage 2.2x). The company repurchased $640M of shares in 2025 and said the November government shutdown reduced Q4 pre-tax earnings by approximately $250M.
Operational highlights: carried a record 181M passengers, lowest seat cancellation rate in company history, 303 daily widebody departures on average, and continued fleet expansion and Starlink installations planned for 2026.
Positive
- Total operating revenue of $59.1B, the highest in United history
- Generated $2.7B of free cash flow in 2025
- Ended 2025 with $15.2B available liquidity and net leverage of 2.2x
- Carried a record 181 million passengers in 2025 and set quarterly revenue records
Negative
- Government shutdown reduced Q4 pre-tax earnings by approximately $250M
- Total Revenue Per Available Seat Mile (TRASM) declined 1.6% in Q4 2025 versus Q4 2024
- CASM-ex increased 0.4% in Q4 2025 versus Q4 2024
News Market Reaction
On the day this news was published, UAL declined 4.34%, reflecting a moderate negative market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $1.67B from the company's valuation, bringing the market cap to $36.85B at that time. Trading volume was elevated at 2.3x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
UAL fell 2.18% while peers were mixed: DAL -1.32%, AAL -1.98%, but LUV, ALK, and CPA were modestly positive. The mixed moves point to a stock-specific reaction rather than a broad airline sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 14 | Product offering update | Positive | -3.2% | New ability to preorder fresh Economy meals on eligible flights. |
| Jan 05 | Earnings scheduling | Neutral | +1.7% | Announcement of timing and access details for Q4/FY 2025 results call. |
| Dec 16 | App features launch | Positive | +4.4% | Launch of virtual gate, club tools and real-time bag tracking in app. |
| Dec 02 | Tech partnership | Positive | +3.2% | Multi-year Travelport relationship to advance modern airline retailing. |
| Nov 11 | Operational update | Neutral | -1.2% | CEO message on handling FAA-mandated cuts during government shutdown. |
Recent news often saw modest positive reactions to product/partnership updates, with occasional divergences where seemingly positive customer initiatives coincided with share price declines.
Over the past few months, UAL news has focused on customer experience, digital upgrades, and distribution partnerships. App enhancements, new mobile features, and a Travelport retailing deal were followed by 3–4% positive moves, while customer-focused shutdown communications and a new preorder meal program saw negative reactions of about 1–3%. Ahead of this earnings beat, the company had already been emphasizing operational reliability and product upgrades, so this results release builds on that trajectory of operational and commercial execution.
Market Pulse Summary
This announcement reported full-year diluted EPS of $10.20 (up 8% year-over-year), adjusted EPS of $10.62, and record annual revenue of $59.1 billion, alongside Q4 revenue of $15.4 billion, the highest quarterly figure in company history. It also highlighted solid pre-tax earnings of $4.3 billion, strong cash generation, and extensive fleet and product investments. Investors monitoring this story would likely focus on unit revenue trends like TRASM down 1.6% in Q4, cost metrics, and execution on planned aircraft deliveries and network growth in 2026.
Key Terms
Net Promoter Score technical
Total Revenue Per Available Seat Mile (TRASM) financial
CASM financial
sustainable aviation fuel technical
Form 8-K regulatory
AI-generated analysis. Not financial advice.
Delivered FY25 diluted earnings per share of
Q4 diluted earnings per share of
Q4 revenue of
Flew a record 181 million passengers and ranked #2 in on-time departures for the year, with the lowest seat cancellation rate in company history
United continues to win brand-loyal customers with new and updated aircraft and investments in infrastructure and technology
Eclipsed 5,000 peak daily flights in summer 2025 and grew faster than any other
The company delivered full-year pre-tax earnings of
"Our results are built on winning more and more brand-loyal customers — it's clear they get the most value flying United," said CEO Scott Kirby. "This was the highest-revenue quarter in United's history and the highest quarterly RASM of the year providing strong revenue momentum that is continuing into 2026."
Customers continue to benefit from United's growing, reliable operation. United canceled flights at the lowest per-seat rate among
United delivered strong fourth-quarter results despite challenges such as the government shutdown, as brand-loyal customers chose the United experience. Compared to the year ago period, diverse revenue sources continued to grow: premium revenue was up
The government shutdown in November provided an opportunity to do the right thing by our customers and further build their trust. United offered all customers a full refund — even if their flights weren't canceled — and aggressively promoted that policy in customer communications including on a dedicated page on the corporate website, and within contact centers. Customers noticed: November was United's highest-ever monthly Net Promoter Score. Our customer-first policies, combined with the impact to bookings and costs, led to an approximately
Fast and free for MileagePlus® members, Starlink Wi-Fi is now installed on nearly all of the dual-cabin United Express fleet, more than 300 aircraft, with completion expected later this month. Starlink installations have begun on mainline aircraft and are expected to accelerate rapidly during 2026.
In 2026 United plans to enhance the customer experience as it plans to take delivery of over 100 narrowbody aircraft and approximately 20 Boeing 787 aircraft – more widebody aircraft in a year than any
Fourth-Quarter Financial Results
- Capacity up
6.5% compared to fourth-quarter 2024. - Total operating revenue of
$15.4 billion 4.8% compared to fourth-quarter 2024. - Total Revenue Per Available Seat Mile (TRASM) down (1.6)% compared to fourth-quarter 2024.
- CASM down (0.3)%, and CASM-ex1 up
0.4% , compared to fourth-quarter 2024. - Pre-tax earnings of
$1.3 billion 8.6% ; adjusted pre-tax earnings1 of$1.3 billion 8.5% . - Impact from the government shutdown was approximately
$250 million - Net income of
$1 billion $1 billion - Diluted earnings per share of
$3.19 $3.10 - Average fuel price per gallon of
$2.49 - Repurchased
$29 million
Full-Year Financial Results
- Pre-tax earnings of
$4.3 billion 7.3% ; adjusted pre-tax earnings1 of$4.6 billion 7.8% . - Net income of
$3.4 billion $3.5 billion - Diluted earnings per share of
$10.20 $10.62 - Ending available liquidity3 of
$15.2 billion - Total debt, including finance lease obligations and other financial liabilities of
$25 billion - Net leverage4 of 2.2x.
- Generated
$8.4 billion - Generated
$2.7 billion - Repurchased
$640 million
Key Highlights
- Operated the largest mainline schedule in company history in the fourth quarter and full year, carrying an average of over 496,000 passengers daily and averaging 303 widebody departures per day in 2025. United achieved its lowest seat cancel rate in history and had the lowest seat cancel rate of large network
U.S. carriers. - In 2025 United added 82 new aircraft and updated 119 aircraft to its Signature Interior, bringing the total to
68% of its narrowbody fleet. The NPS for United's Signature Interior is 10 points higher than on previous interiors. - United continued to expand premium offerings throughout 2025, with a record-high 27.4 million premium seats across its fleet, accounting for
12% of all flown seats in 2025. The airline announced United Elevated, its newest interior for the Boeing 787-9, featuring new United Polaris Studio℠ suites that are25% larger than United Polaris® with privacy doors, ottoman for companions, 27-inch screens, and exclusive food and beverage offerings to elevate premium air travel, expected to be available in 2026. - Connection Saver saved more than one million potential missed connections in 2025, a
42% increase over 2024. - United and its leaders were recognized with more than 70 awards in 2025 for its industry-leading performance in customer experience, innovation, company culture and employment, including being named to Forbes' 2026 list of America's Best Companies and Newsweek's America's Most Trustworthy Companies.
Customer Experience
- Achieved the highest fourth-quarter customer satisfaction score in United history as measured by Net Promoter Score, including its best November NPS ever, despite the government shutdown. For the full year, United achieved its highest NPS since 2022 among on-time passengers, including a seven-point increase in the check-in experience thanks to United's investments in the lobby experience, improved kiosks and the United mobile app.
- In May, announced United's Blue Sky collaboration with JetBlue, and launched the ability to book across both airlines with miles in October 2025, with the ability to book with money expected in early 2026.
- United announced its new MileagePlus Debit Rewards Card in November, offering additional ways to earn miles through spending and saving.
- Launched a collaboration with ride-share app Lyft in the fourth quarter, allowing MileagePlus members to earn up to four miles per dollar spent on eligible rides.
- During 2025, United enhanced its app with new features including a bag-tracking redesign, live activities on the day of travel, and additional connection information. By the fourth quarter,
85% of customers used the United app on their day of travel. More than half of customers who experienced a cancellation in the fourth quarter effectively resolved their issue using self-service and automated tools. - During 2025 United opened its fourth United Club℠ location in
Denver and the second Club Fly location inHouston . Additionally, United re-opened a50% larger United Polaris lounge at Chicago O'Hare and opened a new dining room atNewark's Polaris Lounge for an improved premium international travel experience. - United brought TSA PreCheck Touchless ID to Washington Dulles and
Houston and expanded usage inSan Francisco and Chicago O'Hare in the fourth quarter for a more efficient customer experience. More than 3.5 million customers used this expedited feature in 2025. - United upgraded the inflight entertainment experience for customers by adding more than 450 hours of Spotify audio and video content and award-winning, hit series from Apple TV for free on 150,000+ seatback screens. The airline achieved its highest inflight entertainment customer satisfaction scores among on-time passengers.
Operations
- United Express® had a record-setting year, with 134 days of zero cancellations.
- United's operation at Chicago O'Hare in 2025 outperformed its largest competitor for on-time arrival rates and a lower cancellation rate.
- In the fourth quarter, began operating out of the fifth additional gate at Chicago O'Hare assigned by the
City of Chicago . - Finalized deployment of updated check-in kiosks at all stations in 2025 for a more efficient check-in process, cutting an average of one minute per customer for tasks such as check-in, bag check and boarding pass printing.
- United purchased blended sustainable aviation fuel for use at
Houston ,Newark , and Washington Dulles airports in 2025, growing its SAF use to six hubs.
Network
- United carried more than 181 million revenue passengers in 2025, beginning service on 29 domestic and Canadian routes and adding 13 new international destinations to its industry-leading network.
- United continued to expand its industry-leading international network in 2025 including new flights that made it the only
U.S. airline to serveBangkok, Thailand ;Adelaide, Australia ;Tepic, Mexico ; andHo Chi Minh City,Vietnam . - Announced plans to inaugurate service to
Bari, Italy ;Santiago deCompostela ,Spain ;Glasgow, Scotland ; andSplit, Croatia in 2026. United also plans new routes fromNewark toSeoul, South Korea ; andWashington -Dulles toReykjavik, Iceland .
Employees, Communities and Investments
- Together with MileagePlus members, United donated nearly 32 million miles to non-profit organizations around the world in the fourth quarter, including organizations providing relief to areas affected by Typhoons Tino and Uwan and Hurricane Melissa.
- In the fourth quarter, United carried 85 tons of aid and mobilized nearly 400 responders, providing
$1.3 million $225,000 - More than 10,000 United employees volunteered more than 33,000 hours in 2025 through their business resource groups for employee development and community.
- In 2025, United grew its Special Olympics Service Ambassador program to six of its hubs, with 24 active ambassadors supporting customers.
- United Airlines Ventures, which invests in start-ups developing innovative technologies advancing the aviation industry, announced investments in aerospace companies JetZero and AstroMechanica and travel experience and customer engagement companies Dfinitiv and Mindtrip.
Earnings Call
UAL will hold a conference call to discuss fourth-quarter and full-year 2025 financial results, as well as its financial and operational outlook for the first-quarter 2026 and beyond, on Wednesday, January 21, 2026 at 9:30 a.m. CST/10:30 a.m. EST. A live, listen-only webcast of the conference call will be available at ir.united.com. The webcast will be available for replay within 24 hours of the conference call and then archived on the website.
Outlook
This press release should be read in conjunction with the company's Investor Update issued in connection with this quarterly earnings announcement, which provides additional information on the company's business outlook (including certain financial and operational guidance) and is furnished with this press release to the
The company's business outlook is subject to risks and uncertainties applicable to all forward-looking statements as described elsewhere in this press release. Please see the section entitled "Cautionary Statement Regarding Forward-Looking Statements."
About United
At United, Good Leads The Way. With hubs in
Website and Social Media Information
We routinely post important news and information regarding United on our corporate website, www.united.com, and our investor relations website, ir.united.com. We use our investor relations website as a primary channel for disclosing key information to our investors, including the timing of future investor conferences and earnings calls, press releases and other information about financial performance (including financial guidance), reports filed or furnished with the
Cautionary Statement Regarding Forward-Looking Statements:
This press release and the related attachments and Investor Update (as well as the oral statements made with respect to information contained in this release and the attachments) contain certain "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, relating to, among other things, goals, plans and projections regarding the company's financial position, results of operations, capital allocation and investments, market position, airline capacity, fleet plan strategy, fares, announced routes (which may be subject to government approval), booking trends, product development, corporate citizenship-related strategy initiatives and business strategy. Such forward-looking statements are based on historical performance and current expectations, estimates, forecasts and projections about the company's future financial results, goals, plans, commitments, strategies and objectives and involve inherent risks, assumptions and uncertainties, known or unknown, including internal or external factors that could delay, divert or change any of them, that are difficult to predict, may be beyond the company's control and could cause the company's future financial results, goals, plans, commitments, strategies and objectives to differ materially from those expressed in, or implied by, the statements. Words such as "should," "could," "would," "will," "may," "expects," "plans," "intends," "anticipates," "indicates," "remains," "believes," "estimates," "projects," "forecast," "guidance," "outlook," "goals," "targets," "pledge," "confident," "optimistic," "dedicated," "positioned," "on track", "path" and other words and terms of similar meaning and expression are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. All statements, other than those that relate solely to historical facts, are forward-looking statements.
Additionally, forward-looking statements include conditional statements and statements that identify uncertainties or trends, discuss the possible future effects of known trends or uncertainties, or that indicate that the future effects of known trends or uncertainties cannot be predicted, guaranteed or assured. All forward-looking statements in this release are based upon information available to us on the date of this release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, except as required by applicable law or regulation.
Our actual results could differ materially from these forward-looking statements due to numerous factors including, without limitation, the following: execution risks associated with our strategic operating plan; changes in our fleet and network strategy or other factors outside our control resulting in less economic aircraft orders, costs related to modification or termination of aircraft orders or entry into aircraft orders on less favorable terms, as well as any inability to accept or integrate new aircraft into our fleet as planned, including as a result of any mandatory groundings of aircraft; any failure to effectively manage, and receive anticipated benefits and returns from, acquisitions, divestitures, investments, joint ventures and other portfolio actions, or related exposures to unknown liabilities or other issues or underperformance as compared to our expectations; adverse publicity, increased regulatory scrutiny, harm to our brand, reduced travel demand, potential tort liability and operational restrictions as a result of an accident, catastrophe or incident involving us, our regional carriers, our codeshare partners or another airline; the highly competitive nature of the global airline industry and susceptibility of the industry to price discounting and changes in capacity, including as a result of alliances, joint business arrangements or other consolidations; our reliance on a limited number of suppliers to source a majority of our aircraft, engines and certain parts, and the impact of any failure to obtain timely deliveries, additional equipment or support from any of these suppliers; disruptions to our regional network and United Express flights provided by third-party regional carriers; unfavorable economic and political conditions in
Non-GAAP Financial Information:
In discussing financial results and guidance, the company refers to financial measures that are not in accordance with
Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The company does not provide a reconciliation of forward-looking measures where the company believes such a reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items contained in the GAAP measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the company's control or cannot be reasonably predicted. For the same reasons, the company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.
Please refer to the tables accompanying this release for a description of the non-GAAP adjustments and reconciliations of the historical non-GAAP financial measures used to the most comparable GAAP financial measure and related disclosures.
Change in Presentation:
In the first quarter of 2025, the Company changed its rounding presentation to the nearest whole number in millions of reported amounts, except per share data or as otherwise designated. As such, certain columns and rows within the financial statements and tables presented may not sum due to rounding. Per unit amounts have been calculated from the underlying whole-dollar amounts. This change is not material and does not impact the comparability of our condensed consolidated financial statements.
-tables attached-
UNITED AIRLINES HOLDINGS, INC. | |||||||||||||
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED) | |||||||||||||
Three Months Ended | % Increase/ (Decrease) | Year Ended | % Increase/ (Decrease) | ||||||||||
(In millions, except for percentage changes and per share data) | 2025 | 2024 | 2025 | 2024 | |||||||||
Operating revenue: | |||||||||||||
Passenger revenue | $ 13,926 | $ 13,275 | 4.9 | $ 53,438 | $ 51,829 | 3.1 | |||||||
Cargo | 490 | 521 | (6.0) | 1,779 | 1,743 | 2.1 | |||||||
Other operating revenue | 981 | 899 | 9.1 | 3,853 | 3,491 | 10.4 | |||||||
Total operating revenue | 15,397 | 14,695 | 4.8 | 59,070 | 57,063 | 3.5 | |||||||
Operating expense: | |||||||||||||
Salaries and related costs | 4,524 | 4,325 | 4.6 | 17,647 | 16,678 | 5.8 | |||||||
Aircraft fuel | 2,923 | 2,676 | 9.2 | 11,396 | 11,756 | (3.1) | |||||||
Landing fees and other rent | 1,013 | 901 | 12.4 | 3,849 | 3,437 | 12.0 | |||||||
Aircraft maintenance materials and outside repairs | 919 | 809 | 13.6 | 3,294 | 3,063 | 7.5 | |||||||
Depreciation and amortization | 748 | 759 | (1.4) | 2,939 | 2,928 | 0.4 | |||||||
Regional capacity purchase | 681 | 668 | 2.0 | 2,693 | 2,516 | 7.0 | |||||||
Distribution expenses | 571 | 551 | 3.5 | 2,109 | 2,231 | (5.5) | |||||||
Aircraft rent | 79 | 45 | 76.4 | 252 | 193 | 30.4 | |||||||
Special charges | (8) | 68 | NM | 259 | 112 | NM | |||||||
Other operating expenses | 2,560 | 2,390 | 7.1 | 9,919 | 9,053 | 9.6 | |||||||
Total operating expense | 14,011 | 13,192 | 6.2 | 54,356 | 51,967 | 4.6 | |||||||
Operating income | 1,386 | 1,503 | (7.8) | 4,713 | 5,096 | (7.5) | |||||||
Nonoperating income (expense): | |||||||||||||
Interest expense | (324) | (369) | (12.1) | (1,373) | (1,629) | (15.7) | |||||||
Interest income | 137 | 172 | (20.1) | 611 | 726 | (15.9) | |||||||
Interest capitalized | 54 | 53 | 2.4 | 206 | 227 | (9.3) | |||||||
Unrealized gains (losses) on investments, net | 13 | (39) | NM | 4 | (199) | NM | |||||||
Miscellaneous, net | 59 | (13) | NM | 144 | (53) | NM | |||||||
Total nonoperating expense, net | (61) | (196) | (68.8) | (408) | (928) | (56.1) | |||||||
Income before income taxes | 1,325 | 1,307 | 1.4 | 4,306 | 4,168 | 3.3 | |||||||
Income tax expense | 281 | 322 | (12.7) | 953 | 1,019 | (6.5) | |||||||
Net income | $ 1,044 | $ 985 | 6.0 | $ 3,353 | $ 3,149 | 6.5 | |||||||
Earnings per share, diluted | $ 3.19 | $ 2.95 | 8.1 | $ 10.20 | $ 9.45 | 7.9 | |||||||
Diluted weighted-average shares outstanding | 327.0 | 334.5 | (2.2) | 328.5 | 333.2 | (1.4) | |||||||
NM-Greater than |
UNITED AIRLINES HOLDINGS, INC. | |||||||||||||
PASSENGER REVENUE INFORMATION AND STATISTICS (UNAUDITED) | |||||||||||||
Information is as follows (in millions, except for percentage changes): | |||||||||||||
4Q 2025 Passenger Revenue | Passenger | Passenger | Yield vs. | Available | 4Q 2025 | 4Q 2025 | |||||||
Domestic | $ 8,301 | 2.0 % | (1.9 %) | (0.5 %) | 4.0 % | 45,230 | 37,442 | ||||||
2,274 | 8.7 % | 1.3 % | 1.6 % | 7.3 % | 13,945 | 11,336 | |||||||
410 | 58.7 % | 1.7 % | 1.1 % | 56.0 % | 2,746 | 2,252 | |||||||
Atlantic | 2,683 | 14.2 % | 0.9 % | 1.1 % | 13.1 % | 16,690 | 13,588 | ||||||
Pacific | 1,626 | 10.1 % | 4.2 % | (0.2 %) | 5.7 % | 12,195 | 9,670 | ||||||
1,317 | 0.5 % | (7.6 %) | (4.8 %) | 8.7 % | 9,249 | 7,545 | |||||||
International | 5,626 | 9.5 % | (0.1 %) | (0.6 %) | 9.6 % | 38,134 | 30,803 | ||||||
Consolidated | $ 13,926 | 4.9 % | (1.4 %) | (0.9 %) | 6.5 % | 83,365 | 68,246 | ||||||
Select operating statistics are as follows: | ||||||||||||||
Three Months Ended | % Increase/ (Decrease) | Year Ended | % Increase/ (Decrease) | |||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||
Passengers (thousands) (a) | 45,679 | 44,344 | 3.0 | 181,053 | 173,603 | 4.3 | ||||||||
RPMs (millions) (b) | 68,246 | 64,463 | 5.9 | 271,619 | 258,503 | 5.1 | ||||||||
ASMs (millions) (c) | 83,365 | 78,298 | 6.5 | 330,284 | 311,185 | 6.1 | ||||||||
Passenger load factor: (d) | ||||||||||||||
Consolidated | 81.9 % | 82.3 % | (0.4) | pts. | 82.2 % | 83.1 % | (0.9) | pts. | ||||||
Domestic | 82.8 % | 83.9 % | (1.1) | pt. | 83.2 % | 85.1 % | (1.9) | pts. | ||||||
International | 80.8 % | 80.3 % | 0.5 | pts. | 81.1 % | 80.6 % | 0.5 | pts. | ||||||
PRASM (cents) | 16.71 | 16.95 | (1.4) | 16.18 | 16.66 | (2.9) | ||||||||
Total revenue per available seat mile ("TRASM") (cents) | 18.47 | 18.77 | (1.6) | 17.88 | 18.34 | (2.5) | ||||||||
Average yield per RPM (cents) (e) | 20.41 | 20.59 | (0.9) | 19.67 | 20.05 | (1.9) | ||||||||
Cargo revenue ton miles (millions) (f) | 963 | 981 | (1.9) | 3,626 | 3,604 | 0.6 | ||||||||
Aircraft in fleet at end of period | 1,490 | 1,406 | 6.0 | 1,490 | 1,406 | 6.0 | ||||||||
Average stage length (miles) (g) | 1,477 | 1,450 | 1.9 | 1,488 | 1,490 | (0.2) | ||||||||
Employee headcount, as of December 31 (thousands) | 113.2 | 107.3 | 5.5 | 113.2 | 107.3 | 5.5 | ||||||||
Cost per ASM ("CASM") (cents) | 16.81 | 16.85 | (0.3) | 16.46 | 16.70 | (1.5) | ||||||||
CASM-ex (cents) (h) | 12.94 | 12.89 | 0.4 | 12.64 | 12.58 | 0.4 | ||||||||
Average aircraft fuel price per gallon | $ 2.49 | $ 2.40 | 3.6 | $ 2.44 | $ 2.65 | (7.8) | ||||||||
Fuel gallons consumed (millions) | 1,175 | 1,115 | 5.4 | 4,663 | 4,444 | 4.9 | ||||||||
(a) The number of revenue passengers measured by each flight segment flown. | ||||
(b) The number of scheduled miles flown by revenue passengers. | ||||
(c) The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown. | ||||
(d) RPMs divided by ASMs. | ||||
(e) The average passenger revenue received for each RPM flown. | ||||
(f) The number of cargo revenue tons transported multiplied by the number of miles flown. | ||||
(g) Average distance a flight travels weighted for size of aircraft. | ||||
(h) CASM-ex is CASM less the impact of fuel expense, profit sharing, special charges and third-party business expenses. See NON-GAAP FINANCIAL INFORMATION for a reconciliation of CASM-ex to CASM, the most comparable GAAP measure. |
UNITED AIRLINES HOLDINGS, INC.
1 NON-GAAP FINANCIAL INFORMATION UAL evaluates its financial performance utilizing various accounting principles generally accepted in
Because the non-GAAP financial measures are not calculated in accordance with GAAP, they should not be considered superior to and are not intended to be considered in isolation or as a substitute for the related GAAP financial measures presented in the press release and may not be the same as or comparable to similarly titled measures presented by other companies due to possible differences in method and in the items being adjusted. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
The information below provides an explanation of certain adjustments reflected in the non-GAAP financial measures and shows a reconciliation of non-GAAP financial measures reported in this press release to the most directly comparable GAAP financial measures. Within the financial tables presented, certain columns and rows may not add due to the use of rounded numbers. Percentages, ratios and earnings per share amounts presented are calculated from the underlying amounts.
CASM-ex: CASM is a common metric used in the airline industry to measure an airline's cost structure and efficiency. UAL reports CASM excluding special charges, third-party business expenses, fuel expense, and profit sharing. UAL believes that adjusting for special charges is useful to investors because those items are not indicative of UAL's ongoing performance. UAL also believes that excluding third-party business expenses, such as maintenance, flight academy, ground handling and catering services for third parties, provides more meaningful disclosure because these expenses are not directly related to UAL's core business. UAL also believes that excluding fuel expense from certain measures is useful to investors because it provides an additional measure of management's performance excluding the effects of a significant cost item over which management has limited influence. UAL excludes profit sharing because it believes that this exclusion allows investors to better understand and analyze UAL's operating cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.
Adjusted EBITDA and Adjusted EBITDAR: We calculate Adjusted EBITDA by adding interest, taxes, depreciation and amortization to net income and adjusting for special charges, nonoperating unrealized (gains) losses on investments, net and nonoperating debt extinguishment and modification fees. UAL believes that adjusting for these items is useful to investors because they are not indicative of UAL's ongoing performance. Effective January 1, 2025, Adjusted EBITDA is further adjusted by the fixed portion of operating lease expense, instead of solely aircraft rent as was the case historically, to calculate Adjusted EBITDAR. We believe this change provides investors with enhanced comparability to peers and better reflects our performance. The change in EBITDAR calculation methodology does not represent a change in management's expectations. Prior period amounts have been recast to conform to the current period presentation.
Adjusted Capital Expenditures: UAL believes that adjusting capital expenditures for assets acquired through the issuance or modification of debt, finance leases and other financial liabilities is useful to investors in order to appropriately reflect the total amounts spent on capital expenditures.
Free Cash Flow: Effective January 1, 2025, we define free cash flow as the sum of net cash from operating activities and net cash from investing activities, adjusted for the net change in short-term investments and the net change in restricted cash. We believe adjusting for short-term investments and restricted cash activity provides investors a better understanding of the company's free cash flow generated by our core operations. The change in free cash flow calculation methodology does not represent a change in management's expectations. We believe this change provides investors with enhanced comparability to peers and better reflects our performance. Prior period amounts have been recast to conform to the current period presentation.
Free Cash Conversion: Free cash conversion is a non-GAAP financial measure that is equal to free cash flow divided by adjusted net income. UAL provides free cash conversion because it provides a better understanding of the company's free cash flow generated by our core operations relative to our profitability. We are not providing a target for or a reconciliation to net cash provided by operating activities or net income, the most directly comparable GAAP measures, because we are unable to predict the excluded items contained in the GAAP measure without unreasonable efforts, and therefore we also are not able to determine the probable significance of such items.
Adjusted Total Debt and Adjusted Net Debt: Adjusted total debt is a non-GAAP financial measure that includes current and long-term debt, finance lease obligations and other financial liabilities, current and noncurrent operating lease obligations and noncurrent pension and postretirement obligations. Adjusted net debt is adjusted total debt minus cash, cash equivalents and short-term investments. UAL provides adjusted total debt and adjusted net debt because we believe these measures provide useful supplemental information for assessing the company's debt and debt-like obligation profile.
Net Leverage: Net leverage is a non-GAAP financial measure that is equal to adjusted net debt divided by trailing twelve month Adjusted EBITDAR. UAL provides net leverage because we believe it provides useful supplemental information for assessing the company's debt level. See the above descriptions of Adjusted Net Debt and Adjusted EBITDAR.
Three Months Ended | % Increase/ (Decrease) | Year Ended | % Increase/ (Decrease) | |||||||||
CASM-ex (in cents, except for percentage changes) | 2025 | 2024 | 2025 | 2024 | ||||||||
CASM (GAAP) | 16.81 | 16.85 | (0.3) | 16.46 | 16.70 | (1.5) | ||||||
Fuel expense | 3.51 | 3.42 | 2.5 | 3.45 | 3.77 | (8.5) | ||||||
Profit sharing | 0.29 | 0.37 | (20.8) | 0.21 | 0.23 | (7.4) | ||||||
Third-party business expenses | 0.08 | 0.08 | (4.3) | 0.08 | 0.08 | (0.3) | ||||||
Special charges | (0.01) | 0.09 | NM | 0.08 | 0.04 | NM | ||||||
CASM-ex (Non-GAAP) | 12.94 | 12.89 | 0.4 | 12.64 | 12.58 | 0.4 | ||||||
UNITED AIRLINES HOLDINGS, INC. | ||||||||
NON-GAAP FINANCIAL INFORMATION (Continued) | ||||||||
Three Months Ended | Year Ended | |||||||
Adjusted EBITDA and Adjusted EBITDAR (in millions) | 2025 | 2024 | 2025 | 2024 | ||||
Net income (GAAP) | $ 1,044 | $ 985 | $ 3,353 | $ 3,149 | ||||
Adjusted for: | ||||||||
Depreciation and amortization | 748 | 759 | 2,939 | 2,928 | ||||
Interest expense, net of capitalized interest and interest income | 133 | 144 | 556 | 676 | ||||
Income tax expense | 281 | 322 | 953 | 1,019 | ||||
Special charges (credits) | (8) | 68 | 259 | 112 | ||||
Nonoperating unrealized (gains) losses on investments, net | (13) | 39 | (4) | 199 | ||||
Nonoperating debt extinguishment and modification fees | — | 18 | 20 | 128 | ||||
Adjusted EBITDA (non-GAAP) | $ 2,185 | $ 2,335 | $ 8,076 | $ 8,211 | ||||
Adjusted EBITDA margin (non-GAAP) | 14.2 % | 15.9 % | 13.7 % | 14.4 % | ||||
Adjusted EBITDA (non-GAAP) | $ 2,185 | $ 2,335 | $ 8,076 | $ 8,211 | ||||
Fixed portion of operating lease expense | $ 239 | 211 | 894 | 855 | ||||
Adjusted EBITDAR (non-GAAP) (a) | $ 2,424 | $ 2,546 | $ 8,969 | $ 9,066 | ||||
(a) The prior period has been recast to conform to current period presentation. |
Three Months Ended | Year Ended December 31, | ||||||
Adjusted Capital Expenditures (in millions) | 2025 | 2024 | 2025 | 2024 | |||
Capital expenditures, net of flight equipment purchase deposit returns | $ 1,890 | $ 1,675 | $ 5,874 | $ 5,615 | |||
Property and equipment acquired through the issuance or | $ 26 | $ 565 | (25) | 409 | |||
Operating leases converted to finance leases | $ — | $ 144 | 417 | 239 | |||
Adjusted capital expenditures (Non-GAAP) | $ 1,916 | $ 2,384 | $ 6,266 | $ 6,263 | |||
Three Months Ended | Year Ended December 31, | |||||||
Free Cash Flow (in millions) (a) | 2025 | 2024 | 2025 | 2024 | ||||
Net cash provided by operating activities (GAAP) | $ 1,286 | $ 2,224 | $ 8,431 | $ 9,445 | ||||
Net cash used in investing activities (GAAP) | (1,565) | (1,715) | (6,350) | (2,651) | ||||
Adjusted for: | ||||||||
Net change in short-term investments | (302) | 354 | 591 | (2,623) | ||||
Net change in restricted cash | 2 | 38 | 38 | 99 | ||||
Free cash flow (Non-GAAP) | $ (579) | $ 901 | $ 2,710 | $ 4,270 | ||||
(a) The prior period has been recast to conform to current period presentation. |
December 31, | Increase/ (Decrease) | ||||||
Adjusted Total Debt, Adjusted Net Debt and Net Leverage (in millions) | 2025 | 2024 | |||||
Debt, finance lease obligations and other financial liabilities - current and noncurrent (GAAP) | $ (3,668) | ||||||
Operating lease obligations - current and noncurrent | 6,048 | 4,977 | 1,071 | ||||
Pension and postretirement liabilities - noncurrent | 1,058 | 1,233 | (175) | ||||
Adjusted total debt (Non-GAAP) | (2,772) | ||||||
Less: Cash and cash equivalents | 5,942 | 8,769 | (2,827) | ||||
Short-term investments | 6,298 | 5,706 | 592 | ||||
Adjusted net debt (Non-GAAP) | (537) | ||||||
Net leverage (Non-GAAP) (a) | 2.2 | 2.2 | — | pts. | |||
(a) The prior period has been recast to conform to current period presentation. |
UNITED AIRLINES HOLDINGS, INC. | |||||||||||||
NON-GAAP FINANCIAL INFORMATION (Continued) | |||||||||||||
Three Months Ended | % Increase/ (Decrease) | Year Ended | % Increase/ (Decrease) | ||||||||||
(in millions, except for percentage changes and per | 2025 | 2024 | 2025 | 2024 | |||||||||
Operating expenses (GAAP) | 6.2 | 4.6 | |||||||||||
Special charges (credits) | (8) | 68 | NM | 259 | 112 | NM | |||||||
Operating expenses, excluding special charges | 14,018 | 13,124 | 6.8 | 54,098 | 51,855 | 4.3 | |||||||
Adjusted to exclude: | |||||||||||||
Fuel expense | 2,923 | 2,676 | 9.2 | 11,396 | 11,756 | (3.1) | |||||||
Profit sharing | 244 | 294 | (17.0) | 704 | 713 | (1.3) | |||||||
Third-party business expenses | 64 | 63 | 1.3 | 263 | 246 | 7.1 | |||||||
Adjusted operating expenses (Non-GAAP) | 6.9 | 6.6 | |||||||||||
Operating income (GAAP) | $ 1,386 | $ 1,503 | (7.8) | $ 4,713 | $ 5,096 | (7.5) | |||||||
Special charges (credits) | (8) | 68 | NM | 259 | 112 | NM | |||||||
Adjusted operating income (Non-GAAP) | $ 1,378 | $ 1,571 | (12.3) | $ 4,972 | $ 5,208 | (4.5) | |||||||
Operating margin | 9.0 % | 10.2 % | (1.2) | pts. | 8.0 % | 8.9 % | (1.0) | pt. | |||||
Adjusted operating margin (Non-GAAP) | 9.0 % | 10.7 % | (1.7) | pts. | 8.4 % | 9.1 % | (0.7) | pts. | |||||
Pre-tax income (GAAP) | $ 1,325 | $ 1,307 | 1.4 | $ 4,306 | $ 4,168 | 3.3 | |||||||
Adjusted to exclude: | |||||||||||||
Special charges (credits) | (8) | 68 | NM | 259 | 112 | NM | |||||||
Unrealized (gains) losses on investments, net | (13) | 39 | NM | (4) | 199 | NM | |||||||
Debt extinguishment and modification fees | — | 18 | NM | 20 | 128 | NM | |||||||
Adjusted pre-tax income (Non-GAAP) | $ 1,304 | $ 1,432 | (8.9) | $ 4,580 | $ 4,607 | (0.6) | |||||||
Pre-tax margin (GAAP) | 8.6 % | 8.9 % | (0.3) | pts. | 7.3 % | 7.3 % | — | pts. | |||||
Adjusted pre-tax margin (Non-GAAP) | 8.5 % | 9.7 % | (1.3) | pts. | 7.8 % | 8.1 % | (0.3) | pts. | |||||
Net income (GAAP) | $ 1,044 | $ 985 | 6.0 | $ 3,353 | $ 3,149 | 6.5 | |||||||
Adjusted to exclude: | |||||||||||||
Special charges (credits) | (8) | 68 | NM | 259 | 112 | NM | |||||||
Unrealized (gains) losses on investments, net | (13) | 39 | NM | (4) | 199 | NM | |||||||
Debt extinguishment and modification fees | — | 18 | NM | 20 | 128 | NM | |||||||
Income tax benefit on adjustments, net | (9) | (20) | NM | (136) | (54) | NM | |||||||
Adjusted net income (Non-GAAP) | $ 1,014 | $ 1,090 | (7.0) | $ 3,491 | $ 3,534 | (1.2) | |||||||
Diluted earnings per share (GAAP) | $ 3.19 | $ 2.95 | 8.1 | $ 10.20 | $ 9.45 | 7.9 | |||||||
Adjusted to exclude: | |||||||||||||
Special charges (credits) | (0.02) | 0.20 | NM | 0.79 | 0.33 | NM | |||||||
Unrealized (gains) losses on investments, net | (0.04) | 0.11 | NM | (0.01) | 0.60 | NM | |||||||
Debt extinguishment and modification fees | — | 0.06 | NM | 0.06 | 0.39 | NM | |||||||
Income tax benefit on adjustments, net | (0.03) | (0.06) | NM | (0.42) | (0.16) | NM | |||||||
Adjusted diluted earnings per share (Non-GAAP) | $ 3.10 | $ 3.26 | (4.9) | $ 10.62 | $ 10.61 | 0.1 | |||||||
UNITED AIRLINES HOLDINGS, INC. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(in millions) | December 31, 2025 | December 31, 2024 | |
ASSETS | |||
Cash and cash equivalents | $ 5,942 | $ 8,769 | |
Short-term investments | 6,298 | 5,706 | |
Receivables, net | 2,391 | 2,163 | |
Aircraft fuel, spare parts and supplies, net | 1,556 | 1,572 | |
Prepaid expenses and other | 671 | 673 | |
Total current assets | 16,857 | 18,883 | |
Operating property and equipment, net | 46,121 | 42,908 | |
Operating lease right-of-use assets | 4,958 | 3,815 | |
Goodwill | 4,527 | 4,527 | |
Intangible assets, net | 2,655 | 2,683 | |
Investments in affiliates and other, net | 1,330 | 1,267 | |
Total noncurrent assets | 59,591 | 55,200 | |
Total assets | $ 76,448 | $ 74,083 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Accounts payable | $ 4,567 | $ 4,193 | |
Accrued salaries and benefits | 3,900 | 3,289 | |
Advance ticket sales | 8,131 | 7,561 | |
Frequent flyer deferred revenue | 3,721 | 3,403 | |
Current maturities of long-term debt, finance leases, and other financial liabilities | 4,426 | 3,453 | |
Current maturities of operating leases | 631 | 467 | |
Other | 757 | 948 | |
Total current liabilities | 26,133 | 23,314 | |
Long-term debt, finance leases, and other financial liabilities | 20,562 | 25,203 | |
Long-term obligations under operating leases | 5,417 | 4,510 | |
Frequent flyer deferred revenue | 4,056 | 4,038 | |
Pension and postretirement benefit liability | 1,058 | 1,233 | |
Deferred income taxes | 2,463 | 1,580 | |
Other | 1,478 | 1,530 | |
Total noncurrent liabilities | 35,033 | 38,094 | |
Total stockholders' equity | 15,282 | 12,675 | |
Total liabilities and stockholders' equity | $ 76,448 | $ 74,083 | |
UNITED AIRLINES HOLDINGS, INC. | |||
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (UNAUDITED) | |||
(in millions) | Year Ended December 31, | ||
2025 | 2024 | ||
Operating Activities: | |||
Net cash provided by operating activities | $ 8,431 | $ 9,445 | |
Investing Activities: | |||
Capital expenditures, net of flight equipment purchase deposit returns | (5,874) | (5,615) | |
Purchases of short-term and other investments | (7,763) | (5,809) | |
Proceeds from sale of short-term and other investments | 7,284 | 8,661 | |
Proceeds from sale of property and equipment | 98 | 109 | |
Other, net | (96) | 3 | |
Net cash used in investing activities | (6,350) | (2,651) | |
Financing Activities: | |||
Proceeds from issuance of debt and other financial liabilities, net of discounts and fees | 578 | 6,139 | |
Payments of long-term debt, finance leases and other financial liabilities | (4,771) | (10,138) | |
Repurchases of common stock | (637) | (162) | |
Other, net | (115) | (21) | |
Net cash used in financing activities | (4,945) | (4,182) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (2,865) | 2,612 | |
Cash, cash equivalents and restricted cash at beginning of year | 8,946 | 6,334 | |
Cash, cash equivalents and restricted cash at end of year | $ 6,081 | $ 8,946 | |
Investing and Financing Activities Not Affecting Cash: | |||
Right-of-use assets acquired or modified through operating leases | $ 1,901 | $ 625 | |
Property and equipment acquired through the issuance or modification of debt, finance leases | (25) | 409 | |
Operating leases converted to finance leases | 417 | 239 | |
Investment interests received in exchange for loans, goods and services | 45 | 24 | |
(a) The following table provides a reconciliation of cash, cash equivalents and restricted cash to amounts reported within the | |||
Cash and cash equivalents | $ 5,942 | $ 8,769 | |
Restricted cash in Prepaid expenses and other | — | 11 | |
Restricted cash in Investments in affiliates and other, net | 139 | 166 | |
Total cash, cash equivalents and restricted cash | $ 6,081 | $ 8,946 | |
UNITED AIRLINES HOLDINGS, INC. | ||||||||
NOTES (UNAUDITED) | ||||||||
Special charges (credits) and unrealized (gains) losses on investments, net include the following: | ||||||||
Three Months Ended | Year Ended | |||||||
(in millions) | 2025 | 2024 | 2025 | 2024 | ||||
Operating: | ||||||||
Labor contract ratification bonuses | $ — | $ — | $ 561 | $ — | ||||
(Gains) losses on sale of assets and other special charges | (8) | 68 | (303) | $ 112 | ||||
Total operating special charges (credits) | (8) | 68 | 259 | 112 | ||||
Nonoperating: | ||||||||
Nonoperating unrealized (gains) losses on investments, net | (13) | 39 | (4) | 199 | ||||
Nonoperating debt extinguishment and modification fees | — | 18 | 20 | 128 | ||||
Total nonoperating special charges (credits) and unrealized (gains) losses on | (13) | 57 | 16 | 327 | ||||
Total operating and nonoperating special charges (credits) and unrealized (gains) losses | (21) | 125 | 274 | 439 | ||||
Income tax benefit, net of valuation allowance | (9) | (20) | (136) | (54) | ||||
Total operating and nonoperating special charges (credits) and unrealized (gains) | $ (30) | $ 105 | $ 138 | $ 385 | ||||
Operating and nonoperating special charges (credits) and unrealized (gains) losses on investments included the following:
During 2025, the company recorded a
During 2025, the company recorded
During 2025, the company recorded
During 2024, the company recorded
Effective tax rate:
The company's effective tax rates were as follows:
Three Months Ended December 31, | Year Ended December 31, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
Effective tax rate | 21.2 % | 24.6 % | 22.1 % | 24.4 % | |||
The provision for income taxes is based on the estimated annual effective tax rate, which represents a blend of federal, state and foreign taxes and includes the impact of certain nondeductible items. The decrease in the effective tax rate in the three and twelve months ended December 31, 2025, as compared to the same period in 2024, was primarily due to a release of valuation allowance related to realized capital gains.
1 For additional information about the non-GAAP financial measures used in this press release, see "Non-GAAP Financial Information" below. | ||||
2 Free cash flow is a non-GAAP financial measure that is calculated as the sum of net cash from operating activities and net cash from investing activities, adjusted for the net change in short-term investments and the net change in restricted cash. Please see "Non-GAAP Financial Information" below for additional information regarding non-GAAP financial measures used in this press release. We are not providing a target for or a reconciliation to operating cash flow, the most directly comparable GAAP measure, because we are unable to predict the excluded items noted above contained in the GAAP measure without unreasonable efforts, and therefore we also are not able to determine the probable significance of such items. | ||||
3 Includes cash, cash equivalents, short-term investments and undrawn credit facilities. | ||||
4 Effective January 1, 2025, we define Adjusted EBITDAR, which is included in the calculation of net leverage on a trailing twelve month basis, to include an additional adjustment for the fixed portion of operating lease expense, instead of solely aircraft rent as was the case historically. For additional information about the non-GAAP financial measures used in this press release, including net leverage and Adjusted EBITDAR, see "Non-GAAP Financial Information" below. | ||||
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SOURCE United Airlines
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